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Oregon Bulletin

November 1, 2013

Department of Consumer and Business
Services, Division of Finance and Corporate Securities, Chapter 441

Rule Caption: Clarifies
first time loans of $500 or less are subject to a grace period.

Adm. Order No.: FCS 4-2013(Temp)

Filed with Sec. of State: 9-17-2013

Certified to be Effective: 9-17-13 thru 3-16-14

Notice Publication Date:

Rules Adopted: 441-740-0017

Subject: This temporary
rule clarifies that pawnbrokers shall offer a grace period on all first time pledge
loans, specifically those in the amount of $500 or less. At present, pawnbrokers
provide a grace period by statute for first time pledge loans in excess of $500.
Industry has a long-standing practice of offering a 30-day grace period on all pledge
loans, regardless of the amount. An ambiguity exists as to whether the 30-day grace
period exists on first time pledge loans in the amount of $500 or below. As consumers
may be harmed by the ambiguity, and industry does not have clear guidance as to
how to apply grace periods, the division has opted to adopt this rule. A temporary
rule is necessary because there is an immediate harm to consumers if the ambiguity
is used to omit a grace period on loans of $500 or less.

Rules Coordinator: Shelley Greiner—(503) 947-7484

441-740-0017

Grace Period on Certain Pledge Loans

A pledgor of a loan of $500 or less has
a grace period of 30 days after the expiration of the 60-day loan in which to redeem
the pledge or to renew the loan by paying any renewal fee and all the accrued interest
and fees to date. There is no grace period after a renewal expires.

Stat. Auth.: ORS 726.260 Stats.

Implemented: ORS 726.400

Hist.; FCS 4-2013(Temp),
f. & cert. ef. 9-17-13 thru 3-16-14

Notes1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2012.